Collect Maximum Income Selling Straddles and Strangles
July 08, 2021
Other

Collect Maximum Income Selling Straddles and Strangles

Straddles and strangles are considered advanced options strategies that are suitable for more experienced traders with a high tolerance for risk. However, they also generate maximum income for investors with larger accounts and longer investment horizons. Both of these strategies require a sizable margin account and clearance...

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3 weeks ago
Gamma, Your Option’s Silent Accelerator and Decelerator Pedal
June 01, 2021
Other

Gamma, Your Option’s Silent Accelerator and Decelerator Pedal

What is Gamma? Gamma is one of the least understood of the Greeks affecting an option’s price. Many investors are familiar with the Greek variable delta: the change in the underlying option’s price with respect to the change of the underlying stock price. Gamma is the rate of change in delta per $1 dollar move in the...

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2 months ago
Options Trading Insights with our 13 Year Technical Analysis Backtest
April 29, 2021
Technical analysis

Options Trading Insights with our 13 Year Technical Analysis Backtest

Overview Technical analysis is a powerful, yet exceedingly difficult method of analysis to understand and quantify. By leveraging historical data, technical analysis aims to forecast the future price movement of a financial asset. While many of these strategies may look promising, the reality is that implementation of these...

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3 months ago
Replacing Stock with Longer
Dated Options
October 28, 2019
Trading Idea

Replacing Stock with Longer
Dated Options

Long-term options (options expiring in more than 9 months) provide a cost-effective way of gaining long term exposure to stocks with a smaller capital outlay and limited risk. The average price of a stock in the TSX 60 has almost doubled in the last decade. This translates to significantly more capital being required to...

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5
2 years ago
Entering Options Orders and Managing Positions
October 22, 2019
Risk Management

Entering Options Orders and Managing Positions

Learning how to trade options is a process that takes time and patience. A critical part of placing your first options trade is learning how to enter an order into your brokerage account. Entering options orders can be daunting due to the many variables involved. This post highlights the procedures and best practices for...

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2 years ago
Enhancing Equity Positions with Options
September 12, 2019
Concepts

Enhancing Equity Positions with Options

Introduction Options are typically utilized and viewed as an instrument for trading the direction of stocks and ETFs with leverage. However, they are also useful to equity investors as a way to increase the yield of a portfolio by generating income and purchase stock at a discount. Investors looking to enhance their equity...

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1
2 years ago
Options Insights: Increasing Yields on Equity Positions with Options
September 09, 2019
Concepts

Options Insights: Increasing Yields on Equity Positions with Options

The 12th annual Options Education Day in collaboration with the Options Industry Council (OIC) will take place in Toronto on September 14, 2019 at the Westin Harbour Castle. Seats are limited, so sign up before August 19 for the early bird pricing! To learn more: m-x.ca/oed   Want to learn more about Increasing Yields on...

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2 years ago
Generating Income with Credit Vertical Spreads
August 29, 2019
Bearish Outlook

Generating Income with Credit Vertical Spreads

Credit spreads are a popular strategy that is used to generate income with limited risk from a modest bullish, bearish or even neutral view on a stock or ETF. Many investors are attracted to writing higher delta options because of the higher premiums, but it is important to understand the tradeoff, which is that this will risk...

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1
2 years ago
Minimizing Your Risk with Vertical Debit Spreads
August 14, 2019
Bearish Outlook

Minimizing Your Risk with Vertical Debit Spreads

What are debit spreads? Placing a trade on the direction of a stock using options typically requires purchasing a call or put option. When purchasing options, the largest headwind is erosion of the extrinsic value of an option over time. This is measured by the option’s theta. For a strategy to be profitable, one must predict...

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2 years ago
Options Insights: Minimizing Risk with Debit Vertical Spreads
August 12, 2019
Concepts

Options Insights: Minimizing Risk with Debit Vertical Spreads

Want to learn more about Minimizing Risk with Debit Vertical Spreads?  Participate to the webinar on August 13, 2019 at...

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2 years ago
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